Idiosyncratic risk:
A) can not be eliminated through diversification.
B) is unique to a particular company or asset.
C) is not generally absent from index funds.
D) All of these are true.

Name: Idiosyncratic risk: A) can not be eliminated through diversification. B) is unique to a particular company or asset. C) is not generally absent from index funds. D) All of these are true.
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Question

Quizplus · Accepted Answer

Idiosyncratic risk is specific to a particular company or asset and can be reduced or eliminated through diversification.

Idiosyncratic Risk